Isaac Chege Mwangi
Jomo Kenyatta University of Agriculture and Technology
Dr. Karanja Ngugi
Kenyatta University Department of Accounting and Finance
CITATION: Mwangi, C. I & Ngugi, K. (2014). Determinant of Regulations on Growth of Electricity Projects In Kenya: A Case Study of Rural Electrification Authority. European Journal of Business Management, 1 (11), 336-355.
Electricity market involves a complex system where economic, technical, institutional, financial, social, political and environmental factors interact to influence the demands of the different consumers. Among all these factors, the institutions for the delivery of electricity services and the provision of reliable services particularly to household customers probably exert the greatest effect on these markets. This study sought to investigate role of regulations on growth of electricity projects in Kenya with special focus to Rural Electrification Authority. The study focused on reviewing four variables i.e. Stakeholders influence, Technology, Cost of capital, and Research & development. The target population of this study was management staff at REA working in head office units. The study targeted 450 respondents while employing a simple random sampling technique in coming up with a sample size of 45 respondents. The study generated both qualitative and quantitative data where quantitative data was coded and entered into Statistical Packages for Social Scientists (SPSS Version 21) and analyzed using descriptive statistics. The study found out that top management practices, policy planning and execution are key in establishment and growth of electricity projects in Kenya. Study findings also revealed that REA has developed IT policies that assist the organization in managing projects. Similarly, the study also found out that there is mobilization of capital from donors’ hence effective electrification growth. In addition the study found out that Innovation, project research and programme development are broad organisational concerns relating to performance.
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